According to the Q3 2024 Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report that the region’s total pipeline stands at 1,645 projects/244,548 rooms.
Claiming 45% of the projects and 47% of the rooms in the total pipeline in Europe at Q3, projects currently under construction stand at 738 projects/114,391 rooms. Projects scheduled to start construction in the next 12 months account for 399 projects/57,828 rooms, making up 24% of both projects and rooms. Projects in the early planning stage comprise 508 projects/72,329 rooms, accounting for 31% of the projects and 29% of the rooms in the total pipeline.
At the end of the third quarter, Europe’s construction pipeline continues to be led by projects in the upscale segment with 339 projects/52,743 rooms. Upper midscale follows with 315 projects/47,565 rooms, showing a notable 9% increase in projects YOY. The upper upscale segment reached record highs this quarter, with 281 projects/45,358 rooms, representing an 11% increase in projects and an 8% increase in rooms YOY. Combined, these three chain scales account for 57% of the projects and 60% of the rooms in Europe’s total construction pipeline.
Further, conversion activity remains robust in Europe at Q3, with 497 projects/60,403 rooms, showing a substantial 33% increase in projects and a 21% increase in rooms YOY. Combined, hotel renovations and brand conversions total 637 projects/81,526 rooms.
The leading countries in Europe’s construction pipeline are the United Kingdom with 293 projects/42,071 rooms, Germany with 172 projects/28,304 rooms, Turkey with record highs of 123 projects/18,465 rooms, Portugal with 114 projects/14,048 rooms, and France with 105 projects/11,025 rooms. These five countries combined account for 49% of the projects and 47% of the rooms in Europe’s total pipeline.
The cities with the largest pipelines are London with 75 projects/14,985 rooms, Istanbul with 51 projects/8,255 rooms, Lisbon with 36 projects/4,050 rooms, Dublin with 25 projects/4,665 rooms, and Manchester with 23 projects/4,345 rooms.
In Q3 2024, Europe opened 83 new hotels accounting for 11,640 rooms, bringing the total year-to-date openings to 220 new hotels/29,601 rooms. LE’s forecast for new hotel openings expects an additional 107 new hotels/13,856 rooms to open in Q4, bringing the year-end total for 2024 to 327 new hotels/43,457 rooms. Looking ahead, LE predicts continued growth in new hotel openings with 353 new hotels/51,463 rooms scheduled to open in 2025, and 426 new hotels/57,350 rooms expected to open in 2026.